Untitled Document

News Release
Congressman Bob Etheridge
North Carolina

December 3, 2003

Contact: Sara Lang
Phone: (202) 225-4531

Etheridge: Purchase Intentions A Blow to N.C. Farmers

RALEIGH - U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Agriculture Committee, today acted to mitigate a looming cut in flue-cured tobacco quota in light of U.S. tobacco companies' plans to buy 29.3 million fewer pounds of tobacco in 2004. Etheridge called on U.S. Agriculture Secretary Ann Veneman to use her statutory discretion to raise flue-cured tobacco quota by the maximum 3 percent. Flue-cured quota is determined each year based on intended purchases, average exports and the amount of tobacco needed to attain reserve stock levels. This drop in purchase intentions from 283.3 million pounds in 2003 to 254 million pounds in 2004 could translate into as much as a 21.7 percent cut in quota, which would be the largest percentage cut in quota in 20 years.

"This drop in purchase intentions is another blow to North Carolina's tobacco farmers," Etheridge said. "Farmers and their families have been fighting to survive amid the uncertainly surrounding a buyout and years of diminishing profits. But this historic cut in quota could cripple farmers fighting to keep their farms, their families and their communities afloat. I urge Secretary Veneman to act quickly to soften the blow of a massive quota cut that could spell economic disaster on our farms and in our communities."

Tobacco quotas are established by the U.S. Department of Agriculture (USDA) on December 15th of each year. Etheridge wrote the CEOs of Phillip Morris, Brown & Williamson, R.J. Reynolds Tobacco Company and Lorillard two weeks ago and called on them to file purchase intentions for next year greater than what each company filed last year. During the 2003 flue-cured tobacco-growing season that concluded in October, tobacco farmers were allowed to grow 526.3 million pounds of tobacco, less than half of what they were allowed to grow in 1997.

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